Tips for filing a 1099 while also being a full time W2 employee?

Question

I appreciate anyone willing to share some tax advice! I am currently a full time W2 Employee. I also do real estate transactions on the side as a 1099 Real Estate agent. I have to believe there is a great number of individuals in the BP community that do something similar.

I would like to limit the amount I owe in 1099 taxes by writing off Real Estate training courses I've attended, my mileage, business cards, etc. I have been told that filing a 1099 form and writing off against the taxes owed can be difficult when you also have W2 income.

Can anyone advise on how they have done this in years past? Or if there are some tips I should keep in mind?

Thank you!

Brandon

Ken Nesbitt · Answer

Thanks for asking this question @Brandon Chidester!! I was wondering the same thing. Thanks @Bob Norton for the reply.

Bob Norton · Answer

@Brandon Chidester Since you are a real estate agent, in addition to your W-2 job, you will file Schedule C with your tax return for your realtor business, which will include any 1099 income as a realtor and you will be able to deduct any business-related expenses from this income.  Your real estate training courses may be considered continuing education, if you took the courses after you received your license.  The other expenses -  mileage, business cards, license fees, E&O Insurance, realtor association dues, lockbox fees, MLS dues, etc - are all deductible expenses for your realtor business.  Essentially, if you spent the money because of your realtor business, then it's a business related expense.  This also includes a portion of your cell phone bill, plus home office expenses, if you used a portion of your home as a dedicated office for your realtor business.  Starting a business makes your tax situation complicated and you should consider finding a CPA in your area who specializes in working with realtors and real estate investors.

Brandon Chidester · Answer

Account Closed Your explanation of setting up an S-Corp was very helpful. I appreciate you sharing your professional knowledge. Thank you

Brandon Chidester · Answer

@Bob Norton Thank you for the direction Bob! I appreciate the advice you've given.